Dáil Éireann Debate, Tuesday - 9 July 2013
144. Deputy Brendan Smith asked the Minister for Finance the reason the State's contribution to the EU budget in the first six months of the year, at €931 million, was up from €810 million in 2011; the reason this figure is €67 million higher than expected; and if he will make a statement on the matter. [33395/13]
View answerThe EU budget is mainly financed by contributions from each member state. These comprise ‘traditional own resources’ - principally customs duties collected on behalf of the EU, a VAT related payment under which an agreed percentage is levied on a harmonised VAT base for each member State and finally a balancing component paid according to each member state's share of EU Gross National Income (GNI)*.
The 2013 EU budget is larger than the 2012 EU budget and this partly accounts for higher year-on-year payments made during the first six months of 2013. However, the primary reason for this increase is that the Commission, for cash flow reasons, has adjusted the monthly pattern according to which it seeks funds from member states, compared to previous years. This change to the monthly profile of contributions also explains why Ireland’s EU budget contribution to end June 2013 is €67 million higher than the forecast in the monthly profiles of expenditure and revenue published in February. These adjustments to the monthly profile of a member state's contribution do not affect the annual payment total.
*GNI is equal to GNP adjusted for EU subsidies and taxes.
